Fair Value (Tables)

3 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets (Liabilities) and the Level Used to Measure Them

The following tables present information about financial assets and liabilities carried at fair value on a recurring basis:

	Fair value measurements
	As of September 30, 2019
	Total			Level 1		Level 2		Level 3
	(in millions)
Assets
Investments(a)	$	804		$	613	$	191	$	-
Liabilities
Contingent consideration(b)		(6	)		-		-		(6	)
Redeemable noncontrolling interests(b)		(207	)		-		-		(207	)
Total	$	591		$	613	$	191	$	(213	)

	Fair value measurements
	As of June 30, 2019
	Total			Level 1		Level 2		Level 3
	(in millions)
Assets
Investments(a)	$	761		$	545	$	216	$	-
Redeemable noncontrolling interests(b)		(189	)		-		-		(189	)
Total	$	572		$	545	$	216	$	(189	)

^(a) The investment categorized as Level 1 represents an investment in equity securities of Roku, Inc. (“Roku”) with a readily determinable fair value. The investment categorized as Level 2 represents an investment in equity securities of The Stars Group estimated using the quoted market price of The Stars Group common stock less a discount due to a lack of marketability (“DLOM”). The DLOM was derived based on the remaining term of the lock up period and the volatility of The Stars Group common stock (See Note 2—Acquisitions, Disposals and Other Transactions under the heading “The Stars Group” for further discussion).

^(b) The Company utilizes the market approach valuation technique for its Level 3 fair value measures. Inputs to such measures could include observable market data obtained from independent sources such as broker quotes and recent market transactions for similar assets. It is the Company’s policy to maximize the use of observable inputs in the measurement of its Level 3 fair value measurements. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the liability. Examples of utilized unobservable inputs are future cash flows and long-term growth rates.

Changes in Fair Value of Financial Liabilities on a Recurring Basis Using Level 3

The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows:

	For the three months ended September 30,
	2019			2018
	(in millions)
Beginning of period	$	(189	)	$	(275	)
Net income		(9	)		(11	)
Distributions		8			13
Accretion and other		(17	)		190		(a)
					-
End of period	$	(207	)	$	(83	)

^(a) As a result of the expiration of a portion of the minority shareholder’s put right, approximately $200 million was reclassified into equity.

Schedule of Fair Value and Carrying Value of Borrowings

	As of September 30, 2019		As of June 30, 2019
	(in millions)
Borrowings
Fair value	$	7,889	$	7,643
Carrying value	$	6,752	$	6,751